Identifying and Managing Nature-Related Dependencies and Impacts

The Company analyzes nature-related dependencies and impacts based on the LEAP methodology recommended by the TNFD for analyzing impact and dependency factors. After this analysis, we integrate the four main recommended disclosure topics (governance, strategy, risk and impact management, metrics and targets) from the TNFD and the Task Force on Climate-related Financial Disclosures (TCFD) to disclose information on nature and climate-related topics.
We have gradually integrated management of existing risks into our decision-making process. Since the business operations of companies in the petrochemical industry have a close connection to water resources, land usage, and the ecosystems of our surrounding environment, the Company has taken the results of our assessment of naturerelated dependencies and impacts into consideration when planning social investment and local collaboration actions, using these results as an important reference for identifying local risks, responding to stakeholder concerns, and allocating resources.

Locate：Locate operating sites close to nature-sensitive areas
96.39% of operating locations are not located within legally-designated protected areas, and no operating locations are located within the core of a biodiversity-sensitive area. This shows how the Company has already developed a level of risk control when selecting operating locations. Overall, there is extremely little direct overlap between our operating activities and highly-sensitive biodiversity areas, effectively reducing our potential impact on important ecosystems. Additionally, based on our analysis of active geological faults, 18.59% of our operating locations are located within sensitive areas. These risks will be incorporated into our subsequent operational resilience and disaster prevention management plans. We will also continue to enhance our infrastructure security and operational stability.

Evaluate：Analyze nature-related dependencies and impacts
After referencing the impacts and dependencies described by the WWF and ENCORE for the industry, FPCC has identified 10 material dependency and impact factors, divided into 5 dependency factors and 5 impact factors. This showed how there is a strong relationship between our operating activities and natural capital. In the future, we will include these issues as part of our risk management and strategic planning assessments.

Assess：Conduct scenario analysis to assess nature-related risks and opportunities
Through this analysis of nature-related impact and dependency factors, we examined how climate and ecological changes have impacted FPCC, with the five major driving factors being climate change, changes to land/freshwater/sea use, resource consumption and renewal, pollution/pollution removal, and introduction/removal of invasive alien species. Please refer to (link to assessment of nature-related impacts and dependencies, and social investment report) for a detailed action plan of our response to these impacts and dependencies. At the same time, we will continue to reduce our impact in the future in order to ensure operational stability and sustainable development.